July 6, 2007 (Jobs Byte)
Economy added 132,000 jobs in June
Jobs Byte by Heather Boushey
For Immediate Release: July 6, 2007
Contact: Alan Barber, (202) 293-5380 x115
Inflation-adjusted wages have been falling in 2007.
The economy added 132,000 new jobs in June. Data for April and May were
revised upwards by a total of 117,000 jobs. Overall, the employment
report shows many signs of a healthy labor market: unemployment remains
at 4.5 percent, and the share of the population with a job—the
employment rate—rose back to 63.1 percent in June, after falling to
63.0 in April and May.
There are also other signs that the pace of job creation is slowing.
The establishment survey shows that in 2007, the economy added an
average of 145,000 new jobs, compared to a monthly average of nearly
190,000 in 2006. The household survey shows fairly flat employment
growth over this time period, adding only an average of 36,000 new jobs
each month, compared to a monthly average of 262,000 in 2006.
Trends in the household and establishment surveys
tend to diverge more when the economy is near an inflection point,
moving from recession to expansion or vice versa. At the beginning of
this economic recovery, the household survey showed stronger employment
growth, compared to the establishment survey. At this point, the
establishment survey may be overestimating employment if the BLS’s
imputation model is overestimating firm “births” and underestimating
firm “deaths.” The model is based on the past five years of job
creation, but cannot accurately predict when an economy is near an